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2 Bumps

have you ever filed bankruptcy?

I never thought I would be in this position but here I am. A divorce, a few months of constant medical care and bam. Anyway, here is my question...I have around 36K in debt and make about 40K a year. That isn't including my house which is 2 months behind on the mortgage. I was on disability for 2 months which reduced my pay and also at the same time my ex decided to up and quit his job and not pay CS (still isn't paying, still unemployed) which reduced my income further, and also left me liable for a car payment that was his in the divorce that he never got around to refinancing. At this point i'm ready to just let it all go and start over. I have a paid for car, 94 toyota that needs work but it will do. Can i file on everything? I'm so stressed and angry at everything right now. All my debt is 2 cars, house, 1 cc. all else is medical. any advice? i'm about to lose it.

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Anonymous

Asked by Anonymous at 2:41 PM on Sep. 27, 2010 in Money & Work

Answers (6)
  • I'm considering filing as well...so here;s a bump
    hill_star03

    Answer by hill_star03 at 2:44 PM on Sep. 27, 2010

  • Yes, we went through Ch. 7. It's best that you speak to a BK lawyer about your situation. In our situation, we were living off my admin assistant income after my DH got injured and could no longer be self-employed. I was making 32K a year back then and our debt (mostly DH's residential contracting business, where he was sole proprietor) totaled over 130K. So for us, it was a slam-dunk and we didn't have any problems.
    However, in your situation, it may not be worth it. Only a lawyer can tell you for sure. Also, don't let anyone tell you that BK is not expensive -- our legal fees and filing fees were over 2500. And BK lawyers are not able to take payments, you have to pay them up front.
    Anonymous

    Answer by Anonymous at 2:48 PM on Sep. 27, 2010

  • me and my husband are doing the bankrupty thing right now.Just got quitily of using to may credit cards. Doing chapter seven and will keep the house. All we are doing to just starting from stratch. It is not bad and they even help to figure out how to change things so can spend our money wisely. Just do what is right by you and do your homework. Keep your head up.
    momindiana

    Answer by momindiana at 2:58 PM on Sep. 27, 2010

  • Could you sell the car that has payments to fix your '94 car?

    Could you sell your home and either downsize or rent for a while?

    Could you cancel cable, cell phones, and maybe even internet?

    If you haven't done so already I would strongly recommend getting on a written budget. Prioritize it so that mortgage, food, fuel, insurance, and utilities get paid first. That way you know you've got your basics covered.

    It's okay to not pay your bills if you don't have the money to. Credit cards will take 6 months to a year before they sue you. A lot can change in that time frame. If they do sue you I think you are allowed to make minimum wage and anything above that can be garnished at 25%. But Social security and child support can not be garnished. What I'm saying is you can't get blood out of a rock. If you can't pay you can't pay.

    Continue
    Erica_Smerica

    Answer by Erica_Smerica at 8:57 PM on Sep. 27, 2010

  • Depending on your state they may force the sale e just put a lien or maybof a house and/or your car. Assuming you have equity in either.

    But take a deep breath. This isn't happening today. You might be getting calls from collectors so look up your state law and know your rights when it comes to collections. They can't legally harass you. Unless you owe on student loans, Child support (doesn't sound like you do,) or back taxes - those are the only ones that can attach liens, garnish wages etc. without suing you first. They also aren't bankrupt able. So if you have any of those, remember that you can't bankrupt on them.

    Also remember that a bankruptcy lawyer is probably going to recommend bankruptcy even if you don't need it. That's their job. It's like going to an interior designer and asking them if your home needs remolded. What do you think they are going to say?

    Continue:
    Erica_Smerica

    Answer by Erica_Smerica at 9:02 PM on Sep. 27, 2010

  • I'd also recommend checking out the book Total Money Makeover, by Dave Ramsey from your local library. You very well might be bankrupt, but it's not today. A lot can change in the next 6 to 12 months.

    Good luck. I hope things get better for you soon.
    Erica_Smerica

    Answer by Erica_Smerica at 9:03 PM on Sep. 27, 2010

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